Grand Haven's Grand Landing project could have new owner next week

Cory Morse | MLive.comGrand Landing condominium units in Grand Haven are shown in this file photo. A part of the Grand River is in the foreground.

GRAND HAVEN, MI – Grand Haven’s stalled Grand Landing project could have a new owner as early as next week.

East Lansing-based Redstar Shores is looking to buy the partially-developed land from a court-appointed receiver, Grand Haven City Manager Pat McGinnis said.

Grand Landing sits on the south bank of the Grand River just west of U.S. 31. The area was originally used for industry, but became blighted. Plans to turn it into a mixed-use development stalled when lending tightened up in 2008.

The city doesn’t have to approve a potential sale, which may close next week, but Redstar Shores would have to submit specific development plans for approval, because Grand Landing doesn’t have a general zoning like “commercial” or “industrial,” McGinnis said.

“The allowed zoning is exactly what was proposed by the developer,” he said.

Redstar Shores has informally proposed a mixed-use development with a hotel, restaurants and “medium-range” rental properties, McGinnis said. The original proposal for Grand Landing included a six-story hotel and convention center, restaurants and shops.

Redstar Shores has agreed that the city can recoup its infrastructure investment through property taxes on anything built on Grand Landing, McGinnis said. If Redstar Shores were to buy the land and not build anything, it would be responsible for paying off the bonds the city sold to finance infrastructure improvements, he said.

“As long as the developer sells the property and it gets developed, the developer doesn’t have to pay anything on the bonds,” he said.

If all goes well, Redstar Shores could submit plans as early as September, McGinnis said. But it’s unlikely Grand Haven residents will see construction on Grand Landing before spring.

“I think there’s a lot of pent-up activity ready to take place,” he said.